I 

UNITED STATES DEPARTMENT OF AGRICULTURE 
U. I, FOREST SERVICE 



WILLIAM B. GREELEY, Forester 



SALE PROSPECTUS 



335,000,000 CUBIC FEET 
NATIONAL FOREST 

PULP TIMBER 

WEST ADMIRALTY ISLAND 

UNIT 



TONGASS NATIONAL FOREST 
ALASKA 




1921 



WASHINGTON 

GOVERNMENT PRINTING OFFICE 

1921 



LIBRAHY OF CONGKESS 

©ECEIVED 

0CT>81««t 



*?I^' 

\^^1 



SALE PROSPECTUS. 



335,000,000 CUBIC FEET NATIONAL FOREST PULP 

TIMBER. 

INTRODUCTION. 

The dates given in this prospectus are subject to change depend- 
ing upon the date of sale. They were fixed on the assumption that 
the timber would be sold on June 30, 1921, the date of expiration 
of the advertising period. This tract of timber is now available 
for sale (for a limited time) without the delay incident to advertise- 
ment. 

AREA, LOCATION, AND ACCESSIBILITY. 

The puipwood offered for sale is located on a strip of land varying 
in width from 2 to 4T^r miles and extending «long the west coast of 
Admiralty Island from the head of Hawk Inlet to Mitchell Bay. 
The area comprises complete and contiguous logging units, has a 
frontage on navigable water of 48 miles, and includes approximately 
90,000 acres of merchantable tmiberlands. The gross area, which 
includes such nontimbered lands as muskeags and mountain slopes 
above the limits of commercial tree growth, is 150,000 acres. 

The timber is situated on the east shore of Chatham Straits, in 
the southeastern section of Alaska. To Juneau, the capital and 
largest city of the Territory, it is 24 miles by water from the nearest 
point on the unit; to Seattle, Wash., 900 miles; to Prince Rupert, 
British Columbia, the western terminus of the Grand Trunk Rail- 
road, 335 miles. Steamship service is maintained throughout the 
year between Seattle and Prince Rupert and all points in south- 
eastern Alaska. 

DESCRIPTION OF TIMBER. 

The timber stand is estimated to be 335,000,000 cubic feet (equal 
to approximately 3,350,000 cords) of Sitka spruce, western hem- 
lock, and other species; approximately 15 per cent is Sitka spruce, 
85 per cent western hemlock, and a negligible percentage Alaska 
cedar. 

The average stand per acre is 3,700 cubic feet. 

Volumes are based on solid wood contents, 100 cubic feet of solid 
wood being equal to approximately one cord. 

Both Sitka spruce and western hemlock make good grades of pulp, 
as has been demonstrated by the pulp mills of British Columbia, 

3 



4 / SALE PROSPECTUS, TONGASS NATIONAL FOREST. 

Washington, and Oregon, wliicli use large quantities of wood of 
these species. 

/ The timber may be divided roughly into three general types, on a 
basis of age and quality, as follows: 

1. OVERMATURE TREES WITH UNDER9TORY OF YOUNG TIMBER. 

The overmature timber is hemlock, with a small percentage of 
spruce. The overmature spruce has a range in diameter from 2 to 6 
feet, a total height of 150 to 225 feet, and carries little defect. The 
overmature hemlock varies in diameter from 2^ to 5 feet, has a total 
height of 150 to 175 feet, is clean stemmed and well formed, but 
highly defective. Many hemlock trees of this character fall below 
the minimum requirements for merchantability of trees, as defined 
in the contract, and need not be cut. 

The understory timber is composed largely of hemlock of excellent 
qualit)^. The trees average 18 inches in diameter and 100 to 125 feet 
in height. The trunks are well formed, clear of branches, and show 
very little defect. 

An occasional excellent young spruce is found. 

Approximately 60 per cent of the timber removed from this type 
of forest will come from the understory. 

This type covers almost 50 per cent of the area of the pulpwood 
unit. It averages 3,300 cubic feet per acre. Hemlock constitutes 
90 per cent and spruce 10 per cent of the stand. 

2. MATURE TIMBER. 

The mature timber type is composed of dense stands of large, 
thrifty spruce and hemlock. It differs from the first type described 
in showing a much smaller percentage of defect and in not having 
the understory of younger timber. 

The hemlock ranges from 2 to 4 feet in diameter, with an average 
of about 2^ feet. The total height is 150 feet. The trunks are well 
formed and clear of branches to a point well into the top. 

The spruce is of the same high quality as that in type No. 1, but 
averages somewhat smaller in diameter and forms a higher per- 
centage of the stand. 

The average stand per acre is about 4,000 cubic feet, of which 
hemlock forms 85 per cent and spruce 15 per cent. 

This type covers approximately 25 per cent of the area of the 
pulpwood unit. 

3. YOUNG HEMLOCK AND SPRUCE. 

In the young hemlock and spruce type the trees range in diameter 
from 8 to 24 inches, with an average height of 125 feet. The trunks 
are clear of branches to a 6 or 8 inch top and have very little defect. 



SALE PROSPECTUS, TOXGASS NATIONAL 70REST. 5 

The trees grow in dense stands, 100 to the acre being quite common. 
It is a most excellent class of pulp tim})er. 

The avertige stand per acre is approximately 5,000 cubic feet, of 
which hemlock forms 80 to 85 per cent and spruce 15 to 20 per cent. 

This type covers about 25 per cent of the total merchantable timber 
area of the unit. 

TOPOGRAPHY. 

A range of high, snow-capped mountains which extends south from 
the head of Hawk Inlet to the drainag'"^ area of Mitchell Bay, parallel- 
ing the west coast of Admiralty Island at a distance inland of 3 to 
5 miles, forms the east boundary of the unit between the points 
mentioned. 

This section of the area is characterized by large creeks whicli 
originate in the high slopes of this range and flow northerly and 
westerly between steep lateral ridges. These ridges do not as a 
rule extend to tidewater, but terminate back of a series of low ridges, 
with much gentler slopes immediately along the coast. The valley 
floors of the main streams are usually wide and have an easy gradient 
from the beach to points well up on the headwaters. 

The Mitchell Bay section of the unit consists largely of low-lying 
lands which are a part of a wide strip of rolling country extending 
into the middle of the island. The rear boundary of the unit is an 
arbitrary line so placed that only the timber reached readily from 
Mitchell Bay is included in this sale. 

The overmature and mature timber t3^pes, indicated as types 
Nos. 1 and 2, may occur on all classes of sites, but are most in 
evidence on the slopes of the high ridges where they comprise the 
great bulk of the timber stand. In many cases the south slopes 
carry the mature timber and the north slopes the over-mature 
timber with the understory of younger trees. The altitudinal limit 
of commercial tree growth is from 1,800 to 2,000 feet, but in many 
places the timber does not extend above 1,500 feet. 

The young hemlock and spruce type, indicated as type No. 
3, occurs largely within 1 mile of tidewater. It forms an almost 
continuous strip one-half to 1 mile wide along the coast between 
Point Hepburn and Mitchell Bay. 

GENERAL CONDITIONS OF SALE. 

The stumpage alone is offered for sale, title to the land being re- 
tained by the United States. 

Since the period of advertisement has expired, the timber will be 
awarded to any competent applicant who shows sufficient financial 
ability to fulfill the terms of the contract. This offer will be good 
for a limited time only. No offer will be considered of less than 60 



6 SALE imOSPFX'TUS, TOXGASS NATIONAL FOKEST. 

cents per 100 cubic feet for spruce and Alaska cedar and 30 cents 
per 100 cubic feet for hemlock. 

The bid stumpage prices will apply until April 1, 1928, at which 
time, and at live-^^ear intervals thereafter, the Forester will readjust 
the rates to the extent of making them conform with the then pre- 
vailing prices being received for similar timber on the Tongass 
National Forest. A special provision precludes the establishment 
of any rates for the second period (April 1, 1928, to April 1, 1933) 
which exceed double the rates for the first period. (See introduc- 
tion) . 

Timber will be paid for in advance installments of $10,000 to $20,- 
000 each as cutting proceeds and on the basis of a scale or measure- 
ment made by the forest officers after cutting. 

The sale period extends to March 30, 1953. 

The purchaser is allowed until April 1, 1923, to begin cutting. 
This gives time to construct the necessary improvements and per- 
fect the operating organization. A pulp-manufacturing plant of not 
less than 100 tons daily capacity must be established in Alaska not 
later than April 1, 1924. 

All areas of merchantable timber will be clear cut with the excep- 
tion that not to exceed 5 per cent of the volume of the timber on the 
unit may be reserved for reseeding purposes. Seed trees will ordi- 
narily be left in groups in which no logging will be done. 

The Forest Service reserves the right to require that debris be 
disposed of by lopping the tops and scattering the brush so that it 
Ues close to the ground, or by some other method of disposal of no 
greater expense to the purchaser. 

A surety bond of $50,000 is required to insure compliance with 
the terms of the contract. 

In view of the possibility that the sale area contains more mer- 
chantable timber than can be utilized by the purchaser's manufac- 
turing plant during the period of the contract, the Forest Service 
agrees that if the periodic cutting requirements of the contract have 
been met the timber on any area or areas included in this agreement, 
which in the judgment of the district forester will be uncut on March 
30, 1953, will, upon application, and at least six months prior to 
date of expiration of this agreement, be appraised and advertised for 
sale under sealed bids, at such minimum prices and under such 
requirements as the Forester shall deem necessary. 

For more detailed information on conditions of sale, see form of 
contract on pages 12 to 20. 

REQUIREMENTS PRELIMINARY TO AWARD. 

Before the timber is awarded and the contract submitted to the 
successful applicant for execution, he will be required to file state- 



SALE PROSPECTUS, TONGASS NATIONAL FOREST. 7 

ments showing (1) evidence of financial standing, (2) location of pro- 
posed manufacturing plant and general plan of power development, 
and (3) plan for the development of the timber unit. 
P^vidence of financial standing will be as follows: 

1. The purchaser will be required to show assets in hand equivalent 
to at least 30 per cent of the initial investment in fixed and working 
capital as shown by the appraisal. Such assets must be clear of 
liabilities, which include bonds, mortgages, or notes, but not stock 
subscribed or paid in. Assets may be in the form of cash, improve- 
ments, equipment, or, in the case of corporations, subscribed stock, 
the last not to exceed one-half of the amount required for a satis- 
factor}^ financial showing. Stock subscriptions must be by solvent 
subscribers satisfactory to the approving officer and in the amount 
specified, whether the stock be subscribed at par or not. Assets 
equivalent to subscribed stock may be accepted in the case of firms, 
partnerships, limited corporations, or personal or family arrange- 
ments. These may include written promises or agreements to furnish 
stated amounts of money for the enterprise from persons found to 
have ample resources to make them good. Not less than one-half of 
the amount required for a satisfactory financial showing should be 
available in cash, improvements, or equipment before the timber is 
awarded, and satisfactory guaranties from subscribers should be fur- 
nished that any balance in subscribed stock or promises to furnish 
capital, making up the 30 per cent, will be paid in not later than th^ 
beginning of the cutting period. 

2. Bond issues and other forms of indebtedness are thus restricted 
to a maximum of 70 per cent of the capital needed. 

3. In any case not less than 20 per cent of the fixed and working 
capital required must be furnished in some form by responsible men 
who will be actively identified with the management of the company 
as directors or executive officers. 

4. The plan which will be followed in securing the remainder of 
the capital required, by sales of stock, bond issues, mortgages, etc., 
should also be set forth in the financial statement. 

The amount required for a satisfactory financial showing as de- 
fined in the first paragraph is placed at $500,000. 

TIMBER AVAILABLE FOR FUTURE USE. 

The policy of the Forest Service is to limit the development of 
wood-using industries on National Forest lands in a given region to 
the number that can be supplied with timber indefinitely. The 
primary purpose of this is to insure permanent industries for Forest 
communities b}^ making a perpetual supply of raw material available 
for the use of established plants. 



8 SALE PEOSPECTUS, TONGASS NATIONAL FOREST. 

WATER POWER AND MANUFACTURING SITES. 

The location of power sites determines the location of the manu- 
facturing plant, as cheap log towage in the protected waters of this 
region makes the transportation of the wood more practical than the 
transmission of power for long distances, especially when, as is fre- 
quently the case, the latter would require submarine cables under 
wide sea channels. 

This section of southeastern Alaska has many unappropriated 
power sites of suitable capacity for large pulp and paper plants. 
The power capacities of these sites have been investigated by officers 
of the Forest Service Ofud Geological Survey. A number lend them- 
selves to very economical development. High lakes are usually 
available for storage reservoirs. The low-water period is the three 
winter months. Information in regard to a number of available 
sites with estimated capacities can be obtained from the Forest 
Service. 

Power development is subject to the regulations of the Federal 
Power Commission, Washington, D. C. The law creating the Fed- 
eral Power Commission specifies in effect that power licenses shall be 
granted only for definite projects. Hence it will be necessary for an 
applicant for a power license to show that he has a definite market 
or use for the power. In Alaska the manufacture of pulp and paper 
from the local timber is the most obvious use of the power. It is 
expected that the possession of at least a conditional award of timber 
will be required by the commission. 

Sites for power house and manufacturing plant are usually adjacent 
and the license granted by the Federal Power Commission would 
ordinarily cover both. Should additional adjacent land be needed, 
or if the manufacturing site is for any reason apart from the power 
site, occupancy permits will be granted by the Forest Service, pend- 
ing the elimination from the Forest of the site after substantial devel- 
opments have been made. Title to the site can then be obtained 
from the Department of the Interior, which gives a priority right of 
acquisition to persons 'who have actually developed such sites. 

LOGGING METHODS. 

Machine logging is the only practical operating method in this area 
because of the large size of the trees, the amount of debris on the 
ground, the uneven ground surface, and the steep topography. 

The systems now in use are ground skidding and high lead with 
high-powered donkey engines and heavy cables. It is likely that 
some overhead system would prove most economical for pulpwood 
logging. A good percentage of the timber can be placed in the water 
with only the logging engines by using two or three machines working 



SALE PROSPECTUS, TONGASS NATIONAL FOREST. 9 

tandem. The creek valleys which extend inland for considerable 
distances will require logging railroads or log flumes leading to tide- 
water. The streams are not suitable for log driving. Timber in this 
region is ordinarily handled in full tree lengths. 

Floating camps, which can be towed between logging chances, 
may be used. 

The average length of logging season is eight months. Weather 
conditions will sometimes permit operations for a longer period. 

A sale of this size will require a comparatively large plant to 
utilize the timber in the time given. The large amount of timber 
that must be removed in an eight-month logging season to supply 
the plant for the entire year, and the extensive woods improvement 
that must be installed to reach the timber in the larger creek valleys 
will require that the purchasing company own and operate an exten- 
sive logging outfit. It is not likely that contractors' sales would 
insure the amount of timber needed or that any contractor with 
sufficient capital to log the larger units could be found. Much of 
the logging immediately along the coast can be contracted. The 
Mitchell Bay region offers excellent opportunities for contract 
logging, as it contains a large amount of timber that can be logged by 
simple methods. These contract areas are so located that they need 
not be crossed later by the company's main logging operations. 

After timber is placed in the water it can be made up into simple, 
inexpensive rafts for towing to the mills. The cost of towang at 
present is about 2 cents per thousand board feet per mile. For 
puipwood it should not exceed 1^ cents per 100 cubic feet per mile. 

Large quantities of the more accessible timber on the West Admir- 
alty Island unit can be delivered at the pulp mill at a cost, exclusive 
of stumpage, of $7.50 per 100 cubic feet. For the area as a whole 
it is believed the cost of logs delivered, exclusive of stumpage, will 
be approximately $10 per 100 cubic feet. These estimates are based 
on 1920 wage scales and material costs. 

GENERAL FACTORS AFFECTING OPERATIONS IN ALASKA CLIMATE. 

Southeastern Alaska is characterized by an extremely heavy 
rainf all v/hich is fairly well distributed throughout the 12 months of 
the year. The annual precipitation at Juneau is about 90 inches. 

The temperature is very equable and closely resembles that of the 
Puget Sound region. The winter temperature rarely falls below 
zero, with an extreme of about — 10° F. Ports are open to ocean- 
going vessels throughout the year. No climatic factor will prevent 
continuous operation of a pulp plant. 

64302—21 2 



10 SALE PROSPECTUS, TONGASS NATIONAL FOREST. 

LOCATION OF PLANTS. 

In some cases plants can be located in existing towns. The location 
of power sites within a reasonable distance makes this possible. It 
is likely, however, that mills will be located largely at the power sites 
or at points near by, and on deep water which will permit the direct 
loading of large vessels at the plant dock. Numerous small bays 
and inlets are available for such sites. 

Plants established in iVlaska must be self-sustaining units. Com- 
plete repair shops equipped to make all kinds of major repairs to 
mill and woods machinery must be provided and a very extensive 
stock of spare parts must be maintained. Much floating equipment, 
such as tugboats, pile drivers, launches, and scows, will be required. 

With the exception of plants located in existing towns, it will be 
necessary to provide good dwellings, commissary, school, and recrea- 
tion facilities for employees. 

LOG STORAGE. 

In common with the practice of some other West Coast mills, logs 
may be stored in booms in protected bays until needed. Little diffi- 
culty will be encountered with logs freezing in storage booms if the 
sites are selected with care. 



The Puget Sound labor markets will have to be depended upon to 
furnish the bulk of the woods labor and the unskilled mill labor. 
Seattle is the center for skilled men working in the lumber camps of 
western Washington where logging methods are similar to those used 
in Alaska. It is also an important unskilled labor center. The 
fishing industry of Alaska, which is seasonal, draws thousands of 
laborers of this type from Seattle every spring and returns them in 
the faU. 

Labor in this section of Alaska should form little more of a problem 
than at other places in the Pacific Northwest if the facilities for com- 
fortable living and recreation, which are now being installed in all 
first-class industrial towns and logging camps, are not neglected. 
Wages are somewhat higher than in the Puget Sound region. 

TRANSPORTATION. 

The Alaska Steamship Co. and the Pacific Steamship Co. provide 
good year-round passenger and freight transportation between 
Puget Sound cities and southeastern Alaska points. The Canadian 
Pacific Steamship Co. provides service from Vancouver and Prince 
Rupert, British Columbia, to this region. The last-named com- 
pany is precluded by the United States shipping laws from carrying 



SALE PROSPECTUS, TONGASS NATIONAL FOREST. 11 

passengers and freight between United States ports, including freight 
originating in American cities and sent by rail to Canadian ports for 
transshipment to American ports. 

FUEL FOR STEAM PLANTS. 

Fuel oil from the California fields is delivered in Alaska by tank 
steamers operated by the oil companies. 

Coal from British Columbia and the State of Washington is deliv- 
ered in Alaska by common carrier freight steamers. 

LIMESTONE AND SULPHUR. 

Southeastern Alaska contains an abundance of limestone that can 
be quarried at the edge of tidewater. 

Deposits of iron pyrites, which offer a possible source of sulphur, 
are found at many places in this region. 

FURTHER INFORMATION TO PROSPECTIVE PURCHASERS. 

Detailed reports and maps of the area can be inspected and infor- 
mation in regard to the sale can be obtained at the office of The 
Forester, Washington, D. C. ; the District Forester, Portland, Oreg.; 
or the District Forester, Juneau, Alaska. 

The District Forester at Juneau will be glad to give all possible 
^ J .f ..npr in inspecting the pulpwood unit and available water-power 
sites. 

{ 1. >r- idvertisement which expired on Juue 30, 1921. Timber can now be sold for a limited time at 
private sale without readvertisement.) 

33-5,Ol,'\000 Cubic Feet National Forest Timber and Pulpwood for Sale. 

Location and amount. — All the merchantable dead timber standing or down, and 
all the live timber marked or dengnated for cutting on an area embracing about 
150,000 acre? on the west side of Admiralty Island, extending kom Young Bay on 
the northeast side of the island across to the head of Hawk Inlet, and thence southerly 
along the west side of the island to Kootsnahoo Inlet and Mitchell Bay, Tongass 
National Fovest, Alaska, estimated to be 350,000,000 cubic feet, approximately equiv- 
alent to 3,350,000 cords, more or less, of Sitka spruce, hemlock, and other species of 
timber, approximately 85 per cent hemlock. 

Stumpage prices. — Lowest rates considered, $0.60 per 100 cubic feet for Sitka spruce 
and Alaska cedar and .|0.30 per 100 cul)ic feet for hemlock and other species. Rates 
to be readjusted every five year.-^. 

Depos-it.— With bid $10,000, to be applied on the purcha-je price, refunded, or 
retained in part as liquidated damages, according to the conditions of sale. 

Final date for biWs.— Sealed bids will be received by the district forester, Portland, 
Oregon, up to and including June 30, 1921. 

The right to reject any and all bids is reserved. 

Before bids are submitted full information concerning the character of the timber, 
conditions of sale, deposits, and the submission of bids should be obtained from the 
district forester, Portland, Oregon, or the district forester, Juneau, Alaska. 



12 SALE PROSPECTUS, TONGASS NATIONAL FOREST, 

(Sample Agreement.) 

United States Department op Agriculture, Forest Service, 
Timber Sale Agreement. 



S 

Sales, D-G, Tongass, 

Admiralty Island, 

(Pulpwood). 



(See Introduction.) 



description of timber. 



tion 



Amount. 



Sec. 1. We, , a corporation organized and existing under tie- 
laws of the State of , having an office and principal place of 

business at , State of , hereby agree to purchase from an 

Area and loca-area of about 90,000 acres to be definitely designated on the ground. 
by a forest officer prior to cutting, on Admiralty Island, extending 
from Young Bay on the northeast side of the island across to the head 
of Ilawk Inlet and thence southerly along the west side of the island 
to Kootsnahoo Inlet and Mitchell Bay, as definitely designated on 
the attached map, which i8 nereby made a part of this agreement, 
within the Tongass National Forest, at the rate or rates, and in strict 
conformity with all and singular the requirements and conditions here- 
inafter set forth, ^all the dead timber standing or down and all the live 
timber marked or designated for cutting by a forest officer, merchant- 
able, as hereinafter defined, for pulpwood, saw logs, and for other 
forest products customarily produced in Alaska. The estimated 
amount to be exit under the pro\'isions of sections 7 and 8 is — 

335,000,000 cubic feet of Sitka spruce, hemlock, and other 
species, approximately 15 per cent Sitka spruce and 
85 per cent hemlock. 

Pro vided, That in designating the area to be cut and the areas to be 
reserved from sale as specified in section 2 (h) herein, units bearing 
timber suitable for local use may be excluded to a total amount not 
exceeding 1,600,000 cubic feet, or equivalent amount in other units 
of measure if, in the judgment of the forest superAdsor, the operation 
of the pxu'chaser is not interfered with tiiereby. 

Provided further, That the purchaser shall establish in Alaska, not 
later than April 1, 1924, a pulp-manufacturing plant or plants with a 
daily capacity of not less than 50 tons, which daily capacity shall be 
increased, not later than April 1, 1926, to a total of at least 100 tons. 
Failure of the purchaser to make the first installation by the date 
first above specified shall render this agreement subject to cancellation 
in the discretion of the Forester; and failure to increase the daily 
capacity of the plant or plants by the second date above specified will 
render this agreement subject to such a reduction in area and volume 
of timber as will, in the judgment of the Forester, be commensurate 
with the manufacturing capacity established. 

payments. 

Sec 2 («.). We do hereby, in consideration of the sale of this timber 
to us, promise to pay to the First National Bank of Jimeau, Alaska. 
(United States depository), or such other depository or officer as shall. 



SALE PROSPECTUS, TONGASS NATIONAL FOREST. 



13 



hereafter 1 e depiiiHated, to he i)laced to the credit oi' ilic liuted States, 
for the timber at the following rate.s: 

For all timber cut prior to April 1, ]!)28. at tlie following rales: 

— per 100 cubic feet for Sitka spruce and Alaska cedar, and 

per 100 cubic feet for hendock and other S])ecie8. 

For all timber cut on or after April 1, 1928, and prior to April 1, 1933, 
.at such rates as shall be designated by the Forester within thirty days 
preceding April 1. 1928; 

For all timber cut on or after April 1, 1933, and prior to April 1 . 1938, 
at such rates as shall be designated by the Forester within tliirty days 
preceding April 1, 1933; 

For all timber cut on or after April 1, 1938, and i)rior to April 1, 
1943, at such rates as shall be designated by the Forester within thirty 
•days preceding April 1, 1938; 

- For all timber cut on or after April 1, 1943, anrl prior to April 1, 
1948, at such rates as shall be designated by the Forester within thirty 
■days preceding April 1, 1943; 

And for all timber cut on or after April 1, 1948, at such rates as shall 
be designated by the Forester within tliirty days preceding that date. 

Except as hereinafter provided, material below merchantable size 
under the terms of this agreement wliich is cut and removed at the 
option of the purchaser shall be paid for at the rates then in effect for 
merchantable material. Material unmerchantable on account of 
•defects may be removed without charge in the discretion of the district 
forester. 

(b) The Forester shall reappraise and within thirty days before each 
of the foregoing dates designate the value of each species in consid- 
eration of current operating conditions and markets in southeastern 
Alaska, including the operation of the purchaser, such reappraisals to 
include the timber on the entire tract, and to he based upon an equit- 
:able margin for profit and risk to the purchaser under the operating 
•conditions prevailing throughout the region. 

Provided, That the stumpage price for any species fixed upon any 
Teappraisal date shall not exceed the arithmetical average of the 
prices received for National Forest stumpage of that species in south- 
eastern Alaska during the twelve months preceding the date of re- 
appraisal, as shown by sale contracts executed during that period; and 

Provided further. That in no event shall the stumpage price for any 
.species estal>lished by the Forester to apply during the period from 
April 1, 1928, to April 1, 1933, exceed double the initial rate for that 
species as stated above. 

(c) If any material cut under tkis agreement and merchantable 
under its terms is manufactured or sold by the purchaser for other 
uses other than pulp or its products, the Forester may upon the next 
reappraisal date establish a special stumpage rate for each class of 
material so manufactured or sold during the succeeding period, wliich 
rate, in accordance with the ratio per one hundred cubic feet currently 
used by the Forest Service, shall be not less than the initial stumpage 
price fixed herein and shall allow the purchaser an equitable margin 
ior profit and risk under current selling prices and costs of production 
in the region denned above. 

(d) It is further agreed that the Secretary of Agriculture will, upon 
written application from the purchaser showing goofl and sufficient 



Initial rates. 



Reappraisals. 



14 SALE PROSPECTUS, TONGASS IS^ATIONAL FOREST. 

reasons therefor and specifically tlie existence of a serious emergency 
arising from changes in market conditions since the last reappraisal, 
at his option, when action of either character is necessary to relieve 
the purchaser from hardship, either — 

(1) Redetermine and establish the stumpage rates and designate a- 
date when the rates as redetermined shall be effective, which date 
shall be within six (6) months of the date of application; or 

(2) Grant an extension of time within which the respective amounts 
of timber specified in Section 4 shall be removed, not to exceed the 
total period allowed for cutting all the timber. 

Any stumpage rates redetermined upon application to the Secretary 
shall be determined in accordance with the methods and under the 
terms above set forth, and shall apply only during the remainder of 
tire five-year period then current, when the rates shall be regularly 
designated after reappraisal. 

(e) In no event, however, shall the stumpage rates for products 
from material whose utilization is required by this agreement as 
established upon any date above named, or upon application from the 
piirchaser, be less than those specified herein to be paid for timber 
cut prior to April 1, 1928. 

(/) It is further agreed that at the date of any reappraisal of stumpage 
prices the Forester may require such modifications in the sections, 
numbered 7, 8, 13, 15, 16, 17, 18, 19, 21, 22, 23, and 24 in this agreement 
as are necessary, in his judgment, to protect the interests of the United 
States. Such modifications shall be limited to requirements contained 
ill the then current timber sale contracts in southeastern Alaska and 
shall be practical)le under the existing equipment and organization of 
the purchaser. Any additional operating costs entailed by such 
modifications, as ascertained by the Forester, shall be taken into 
consideration as a factor in reappraisals. 

(g) Payments shall be made in advance installments of not less 
than ten thousand dollars ($10,000) and not more than twenty thou- 
sand dollars ($20,000) each when called for by the forest officer in 
charge, except just before the comi^letion of the sale or a period Avhen 
cutting operations are to be suspended for at least three (3) months, 
when the amount of the payment shall be designated in writing by the 
forest supervisor, credit being given for the sums, if any, heretofore 
deposited with the said United States depository or officer in con- 
nection with the sale. 

(h) It is further agreed that in the event the requirements of section 
4 of this agreement are complied with to the satisfaction of the Forester, 
the timber on any area or areas included in this agreement, which in 
the judgment of the district forester will be uncut on March 30, 1953, 
will, upon application, and at least (i months prior to date of expira- 
tion of this agreement be appraised and advertised for sale under 
sealed bids, at such minimum prices and under such requirenKiits 
as' the Forester shall deem necessary. 

PERIOD OF CONTRACT. 

Cutting period. 8ec. 3. The cutting and removal of timber under this agreement 
shall begin not later than April 1, 1923, and unless extension of time is 
granted, all timber shall be cut and removed and the reciuirements 
of this agreement satisfied on or Ijcfore March 30, 1953. 



SALE PRUSPECTUS, TOXGASS NATIONAL FOREST. 15 

Sec. 4. Unless s\ich amounts are reduced in writing by the district Periodic cuts, 
forester at least 25.000,000 cubic feet shall be cut prior to April 1, 
1928: at least (iO,000,000 cubic feet shall be cut prior to April 1, 1933: 
at least 100,000,000 cubic feet shall be cut prior to April 1, 1938: at 
least 150,000,000 cuinc feet shall be cut prior to April 1, 1943; and 
at least 200,000,000 cubic feet shall be cut prior to April 1, 1948. 



Sec. 5. The title to all timber included in this agreement shall Title to timber, 
remain in the United States until it has been paid for, and scaled, 
measured, or counted as herein provided. 

Sec. G. Timber upon valid claims and all timber to which • 'i< 'i"® ^.j.^^'J,^ ^ ^ "" °° 
exists valid claim under contract with the Forest Service is exempted 
from this sale. 

OESICXA'lIOX. 

Sec. 7. Timber shall be designated for cutting as follows: The ^gTimber^^r^e^- 
exterior boundaries of the sale area shall be marked and all seed trees ing. 
and groups of seed trees, and areas considered unmerchantable or 
inaccessible in the judgment of the forest officer in charge within these 
boundaries, shall be plainly marked or posted. All other timber shall 
be considered as designated for cutting. Groups of trees or single 
trees may be reserved for seed wherever it may be deemed necessary 
by the forest officer in charge: ProvldecL That not more than five per 
cent (5%) of the merchantable volume on the sale area shall be so 
reserved. All other merchantable timber shall be cut. 

Sec 8. The aj^proximate minimum diameter limits outside bark ^Kmmum di- 
at a point 4J feet from the ground to which timber shall be designated 
for cutting under the terms of this agreement are fourteen (14') inches 
for Alaska cedar and eight (8) inches for all other species. 



Sec. 9. As far as may be deemed necessary for the protection of operlfions!*'^^™^ 
National Forest interests, the plan of logging operations on the respec- 
tive portions of the sale area shall be approved by the forest officer 
in charge. When operations are begun on any natural logging area, 
the cutting on that area shall be fully completed to the satisfaction 
of the forest officer in charge before cutting may begin on other areas, 
unless such cutting is authori/ced in writing with the requirement 
that cutting shall be completed on the area left unfinished as soon 
as practicable. After decision in v.Titing by the forest officer in charge cutw4?l^reas. °^ 
that the purchaser has complied satisfactorily with the contract require- 
ments as to specified areas, the purchaser shall not be required to do 
additional work on such areas. 

Sec. 10. All and only designated live trees shall be cut. Xo timber forepal^ent. 
shall be cut until paid for, nor removed from the place or places agreed 
upon for scaling until scaled, measured, or counted by a forest officer. 

Sec. 11. No unnecessary damage shall be done to young growth or yoiujg growth, 
to trees left standing, and no trees shall be left lodged in the process of 
felling. Undesignated trees which are badly damaged in logging shall 
be cut if required by the forest officer in charge. 

Sec 12.' Undesignated live trees which are cut, or injured tlu-ough Penalty for 
carelessness, and designated trees left uncut on areas on which logging waste. 
has ceased, shall be paid for at double the current price for tlie cla^-s of 



16 SALE PROSPECTUS, TONGASS KATIOXAL FOREST. 

mateiial which they contain fixed in accordance with the terms of this 
agreement. Timber wasted in tops or stumps, designated timber 
broken by careless felling, and any timber merchantable, according to 
the terms of this agreement, which is cut and not removed from any 
portion of the cutting area when operations on such portion are com- 
pleted, or before this agreement expires or is otherwise terminated, 
shall be paid for at the current price for such material. The amounts 
herein specified shall be regarded as liquidated damage and may be 
waived in the discretion of the forest officer in charge in accidental or 
exceptional cases which involve small amounts of material. Any 
timber remaining on the sale area at the expiration or termination of 
this agreement, for which payment as specified in this section has 
been made to the United States, may be removed within six months 
from such date of expiration. 

stump height Sec. 13. All cutting shall be done with a saw when practicable, 
and top diameter. , i, , , , . -, -, , 

btumps shall be cut so as to cause the least practicable waste and not 

higher than eighteen (18) inches on the side adjacent to the highest 
ground for all trees with a diameter of twenty-four (24) inches and 
under at a point 4 J feet from the ground, and not higher than twenty- 
four (24) inches on the side adjacent to the highest ground for all trees 
with a diameter over twenty-four (24) inches at the point described, 
except in unusual cases when in the discretion of the forest officer in 
charge this height is not considered practicable; all trees shall be 
utilized to as low a diameter in the tops as practicable and to a mini- 
mum diameter of ten.(lO) inches for Alaska cedar and six (6) inches for 
all other species when merchantable in the judgment of the forest offi- 
cer in charge. The log lengths shall be varied so as to secure the great- 
est possible utilization of merchantable material. 
Wood used as gEc. 14. Wood taken from tops or unmerchantable timber for use as 
fuel in connection with logging operations shall be allowed free of 
charge. 

SCALING AND MERCHANTABILITY. 

Measurement. g^c. 15. Material shall be piled, rafted, or skidded for scaling, meas- 
urement, or count if required by the forest officer in charge and in such 
manner as he shall direct. Logs will be measured in cubic feet on the 
basis of the length and the average middle diameter inside the bark 
taken to the nearest inch, or, if it is impracticable to secure the aver- 
age middle diameter, on the basis of the length and the average of the 
diameters inside bark at the two ends of the log, each measured to 
the nearest inch. 

Sec. 16. If any pulpwood is cut in the form of cordwood instead of 
in logs, it shall be measured in cords of 128 cubic feet of stacked wood, 
and the number of cords converted into cubic feet at the ratio of one 
cord equalling 100 cubic feet unless or until, as the result of actual 
measurements, the district forester and the purchaser shall have 
agreed on the use of some other ratio. Such material shall be piled for 
measurement as the forest officer in charge shall direct. 

Scaluig length. Sec. 17. In obtaining the cubic contents of logs the maximum mea- 
suring length may, in the discretion of the district forester, be thirty- 
two feet; .tireater lengths may be measured as two or more logs. 



SALE PROSPECTUS, TONGASS NATIONAL l-^ORKST. 17 

Sec. is. Any tree which in the judgment of the ioroM ofiicer con- Definition of 
tains one or more logs merchantable as defined in section 19, and having [^,^^fp^c^*"*^^'« 
a net total merchantable volume of 25 per cent or more of the total vol- 
ume of the tree, shall he considered merchantable under the terms of 
this agreement. 

Sec. 19. All spruce logs are merchantable under the terms of this Merchantabil- 
agreement which are not less than 16 feet long, at least G inches in '^^ *^®^"'^- 
diameter inside bark at the small end, and after deductions for visible 
indications of defect are estimated to contain 3?4 per cent sound 
material; all Alaska cedar logs are merchantable under the terms of 
this agreement which are not less than Ifi feet long, at least 10 inches 
in diameter inside bark at the small end, and after deductions for 
visible indications of defect are estimated to contain 33J per cent 
sound material; and all logs of hemlock and other species are mer- 
chantable under the terms of this agreement which are not less than 
16 feet long, at least 6 inches in diameter inside bark at the small end, 
and after deductions for visible indications of defect are estimated to 
contain 50 ])er cent sound material: Provided. That the 33^ per cent 
aforesaid in spruce and Alaska cedar logs and the 50 per cent aforesaid 
in hemlock and other species shall he so located in the log as to permit 
the use of the sound material for pulp manufacture under the pulp 
manufacturing methods used in efficiently conducted pulp operations 
in Alaska. 

Sec. 20. On request, copies or abstracts of the scale reports will be Scale reports, 
furnished to the purchaser after they have been approved by the forest 
supervisor. 

BRUSH DLSPOSAL. 

Sec. 21. The district forester may require that all tops shall be^ra^^^"'*' °^ 
lopped and all brush scattered so as to lie close to the ground and away 
from standing trees and reproduction, or any other method of disposal 
the cost of which shall not be in excess of this method. 

FIRE PROTECTION. 

Sec. 22. During the time that this agreement remains in force the g^t^i^^ ^° 
puchaser shall independently do all in his powder to prevent and 
suppress forest fires on the sale area and in its vicinity, and shall 
require his employees, contractors, and employees of contractors to 
do likewise. Unless prevented by circumstances over which he has 
no control, the purchaser shall place his employees, contractors, and 
employees of contractors at the disposal of any authorized forest 
officer for the purpose of fighting forest fires, Avith the understanding 
that unless the fire-fighting services are rendered on the area embraced 
in this agreement or on adjacent areas within one mile, payment for 
such services shall be made at rates to be determined by the forest 
officer in charge,_which rates shall be not less than the current rates 
of pay prevailing in the said National Forest for services of a similar 
character: Provided, That the maximum expenditure for fire fighting 
without remuneration in any one calendar year, at rates of pay deter- 
mined as above, shall not exceed $10,000, including the furnishing of 
special trains or other special service as recjuired; and further provided, 
that if the purchaser, his employees, contractors, or employees of con- 
tractors are directly or indirectly responsible for the origin of the fire, 



18 BALE PROSPECTUS, TOXGASS ZTATIOXAL EOREST. 

no payment shall be made for services so rendered, nor shall the cost 
of such services be included in determining said maximum expenditure 
for any calendar year. 

It is further agreed that except in serious emergencies as determined 
by the forest supervisor the purchaser shall not i)e required to furnish 
more than 100 men for fighting fire outside of the area above specified, 
and that any employees furnished shall be relieved from fire fighting 
on such outside areas as soon as it is practicable for the forest supervisor 
to obtain other labor adequate for the protection of the National Forest. 

spark arresters, gg^^ 23. If required by the forest supervisor in writing, all donkey 
engines or other steam-power engines shall, during the period fi'om June 

Fire equip- 1 to October 1 of each year, burn oil, or shall be equipped with spark 
arresters acceptable to the forest officer in charge, six (6) 12-quart pails, 
six (6) shovels, and a constant supply of not less than the equivalent 
of twelve (12) barrels of water, this equipment to be suitable for fire- 
fighting purposes and kept in serviceable condition. 

Bxirning of ref- Sec. 24. During the period from June 1 to October 1 of each year 
no refuse, brush, slash, or debris shall be burned without the written 
consent of the forest officer in charge. 

Transportation Sec. 25. Officers of the Forest Service, fire fighters, and other regu- 
on logging roads, j^j, ^^^^^ temporary employees shall be transported free of charge over 
logging roads operated in connection with this sale not common car- 
riers, and shall be permitted to ride upon logging trains and engines 
or to operate speeders .when traveling upon official ];)usiness. Forest 
officers and other employees riding on logging trains, engines, or 
speeders shall do so at their own risk, and the owner of the railroad 
expressly reserves the right to enter into an agreement with such 
persons before entering upon said trains or engines, or before operating 
a speeder, releasing the said owner from liability for any injury sustained 
by them in riding on said trains, engines, or speeders, arising from 
any cause whatsoever. In emergencies arising from forest fires, special 
trains shall be fiu'nished to officers and employees of the Forest Service. 

OCCUPANCY. 

Logging im- Sec. 26. The purchaser is authorized to build on National Forest 
provemen s, l^n^d sawmills, camps, railroads, roads, and other improvements 
necessary in the logging or the manufacturing of the timber included 
in this agreement: Provided, That all such structures and improve- 
ments shall be located and operated subject to such regulation by the 
forest officer in charge as may be necessary for the protection of National 
Forest interests. The continuance or operation of such improvements 
on National Forest land after this agreement has terminated shall be 
subject to authorization by permit or easement under United States 
laws, and unless such authorization is secured all improvements not 
removed shall become the property of the United States at the expira- 
tion of six months from the termination of this agreement. 

Construction Sec 27. All merchantable timber used in the construction of build- 
ings, roads, and other structures necessary in connection with the cut- 
ting and remoA^al of the timber covered by this agreement shall be 
paid for at the current rates for such material under tliis agreement. 
Cull material and unmerchantable tops of any species may l)e used for 
such purposes without charge and shall l:e left in place where used. 

Sanitation of Sec 28. Logging camps, mills, stables, and other structures, and the 
ground in their vicinity, shall l)e kept in a clean, sanitary condition, 



SALE PROSPECTUS, TOXGASS NATIONAL FOREST. 19 

and rubbish shall be removed and burned or buried. When camps or 
other establishments are removed from one location to another or 
abandoned, all debris shall be burned or otherwise disposed of as the 
forest oiiicer in charge shall direct. 

MISCELLANEOUS. 

Sec. 20. At all times when logging operations are in progress the Representaiive 
purchaser shall have at the main camp for his employees working on 
the sale area a representative who shall be authorized to receive, on 
behalf of the purchaser, any or all notices and instructions in regard 
to work under this agreement given by the forest ofhcer in charge, and 
to take such action thereon as is required by the terms of this agree- 
ment. 

Sec. 30. Complaints by the purchaser arising from ajiy action taken Complainis by 
by a forest officer under the terms of this agreement shall not be con- ^ 
sidered unless made in writing to the forest supervisor having juris- 
diction within thirty (30) days of the alleged unsatisfactory action. 
The decision of the Secretary of Agriculture shall be linal in the inter- 
pretation ol' the regulations and provisions governing the sale, cutting, 
and removal of the timber covered by this agreement. 

P.ut I'.othing herein shall be construed to prevent the institution by 
the piu-chaser of any available legal proceedings if he deems the 
stumpage prices as determined by reappraisal by the Forester and 
fixed by the Secretary of Agriculture upon appeal to be inequitable 
under the provisions hereof. 

Sec. 31. All operations on the sale area, including the removal of Suspension of 
scaled timber, may be suspended by the district forester, in writing, "P®'"^^'''"^- 
if the conditions and requirements contained in this agreement are 
disregarded, and failure to comply with any one of said conditions and 
requirements, if persisted in, shall be sufficient cause for the termina- 
tion of this agreement: Frorided. That the Forester may, upon recon- 
sideration of the conditions existing at the date of sale and in accordance 
with which the terms of this agreement were fixed, and with the con- 
sent of the purchaser, terminate this agreement, but in the event of 
such termination the purchaser shall be liable for any damages sus- 
tained by the United States arising from the purchaser's operations 
hereunder. 

Sec. 32. All the books pertaining to the purchaser's logging opera- inspection of 
tion and milling business shall be open to inspection at any time by 
a forest officer authorized by the district forester to make such inspec- 
tion with the understanding that the information obtained shall be 
regarded as confidential. 

Sec. 33. The term "officer in charge" wherever used in this agree- ,, Definition ^^of 
ment signifies the ofiicer of the Forest Service who shall })e designated 
by the proper supervisor or by the district forester to supervise the 
timber operations in this sale. 

Sec. 34. No Member of or Delegate to Congress, or Resident Com- , j^'^^ °^ ^^^■'■c'l *> 
missioner, after his election or appointment, and either before or after 
he has qualified, and during his continuance in office, shall be admit- 
ted to any share or part of this contract or agreement, or to any benefit 
to arise thereupon. Notiiing, however, herein contained shall be con- 
strued to .extend to any incorporated company, where such contract 
or agreement is made for the general benefit of such incorporation or 



20 SALE PEOSPECTUS, TONGASS NATIOIS^AL FOREST. 

company. (Section 3741, Re\ased Statutes, and sections 114-116, 

act of March 4, 1909.) 

Conti^ct non- <^^q_ 35^ xiiis aweement shall not be assigned in whole or in part, 
assignable. o mi ■ ,• 1 

Authority to '^^c. 36. The conditions of the sale are completely set forth in this 

™?'^^y agree- agreement, and none of its terms can be varied or modified except in 
writing by the forest officer approving the agreement, or his successor- 
or superior officer, and in accordance with the regulations of the Secre- 
tary of Agriculture. No other forest officer has been or will be given 
authority for this purpose. 

Sec. 37. And as a further guarantee of a faithful performance of the 
conditions of this agreement we deliver herewith a bond in the sum of 
fifty thousand dollars (150,000.00), and do further agree that all moneys 
paid under this agreement shall, upon failure on our part to fulfill all 
and singular the conditions and requirements herein set fortn, or made a 
part hereof, be retained by the United States to be applied as far as 
may be to the satisfaction of our obligations assumed hereunder. We 
do further agree that shoiild the sureties on the bond delivered here- 
with or on any bond delivered hereafter in connection with this sale 
become unsatisfactory to the officer approving this agreement, we will 
within thirty (30) days of receipt of demand furnish a new bond with, 
sureties solvent and satisfactory to the appro\dng officer. 

Signed in duplicate this day of , 192. . . 

[Corporate seal.] 

By 

Its 

Witnesses: 



Approved at under the above conditions,. 

, 192... 

District Fon titer- 



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LIBRARY OF CONGRESS 




D0DDfl^7707D 



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